Page 109 - AAA Integrated Workbook STUDENT S18-J19

Chapter 8

Group and transnational audits

Outcome

By the end of this session you should be able to:

 recognise the specific matters to be considered before accepting appointment
as group auditor to a group in a given situation

 identify and describe the matters to be considered and the procedures to be
performed at the planning stage, when a group auditor considers the use of the
work of component auditors

 identify and explain the matters specific to planning an audit of group financial
statements including:

– assessment of group and component materiality

– the impact of non-coterminous year ends within a group

– changes in group structure or a complex group structure

 recommend and discuss the communications and content therein to be
provided by the group auditor to the component auditor in a given situation

 recognise the audit problems and describe audit procedures specific to:

– a business combination, including the classification of investments

– the determination of goodwill and its impairment

– group accounting policies

– inter-company trading

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